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Samsung, SK Hynix Experience Low Yields in 18nm DRAM Production

Samsung Electronics and SK Hynix have both experienced low yield rates of their 18nm process technologies for server DRAM productions, according to industry sources.

With Samsung and SK Hynix encountering technical problems with their 18nm DRAM production for servers, the already-tight supply of server DRAMs particularly high-end ones for data center applications will become even tighter.

US and China-based vendors have already requested their Korea-based memory suppliers to suspend shipments until their 18nm DRAM process yield rates improve, unnamed sources told Diditimes.com. It may take 1-2 months or even longer for the two DRAM firms to improve their 18nm production yield rates, the report added.

DRAM prices for the third quarter are likely to fall more quickly than previously expected, as uncertainty emerges about the server DRAM supply.

Server DRAMs require relatively high production quality compared to DRAM used in notebooks and PCs. This means that the issue should not have a material impact on the overall DRAM supply.